Investment Update

28 March 2013

Duet Real Estate Finance Limited

("DREF" or the "Company")

Investment Update

The Company is pleased to announce that the Master Fund has completed the penultimate transaction of its investment programme, having today provided a €37.5 million mezzanine loan backed by a portfolio of 20 hotels located across Germany.

The portfolio consists of fifteen Holiday Inns, four Best Western Hotels and one Queens Hotel and has been acquired by a consortium led by Fattal Hotels. The portfolio complements Fattal's existing chain of Leonardo hotels in Germany. With this new portfolio, Fattal Hotel Group grows to 85 hotels globally, with over 16,000 rooms. The Master Fund's loan has a loan-to-value ratio of 75% and a projected internal rate of return in line with its investment criteria.

The Master Fund is in the final stages of negotiation in connection with the final transaction of its investment programme. Should it transpire that this transaction does not complete, shortly thereafter the Master Fund will provide the Company with the option to request the return of the relevant capital.

As such, the Company will update the market in respect of the fully invested portfolio of the Master Fund in due course.

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